What is the equilibrium price of widgets

Assignment Help Econometrics
Reference no: EM13192687

The market for widgets is perfectly competitive with a market demand
curve of: Q =200-(.5)P

There is a single production technology available to firms that choose to operate in the market. The long run total cost function associated with this technology is C(q)=q2 +100

(a) Find the average cost and marginal cost functions for an individual firm. What is the long-run market supply curve in the industry?

(b What is the equilibrium price of widgets? How many firms operate in the market?

(c) Suppose that New Widgets Inc. has just patented a new weidget production technology that results in a long run cost function of

C (q) = 2q2 +80. How many widgets will New Widgets choose to produce at the prevailing market price?

Reference no: EM13192687

Questions Cloud

Explain constructing a born-haber cycle : Compare lattice energies of LiI and PbI2 and calculate the formation enthalpy in each case by constructing a Born-Haber cycle. Which one is more ionic? Comment.
State mole fraction of all components in the mixture : What are the mass and mole fraction of all components in the mixture? What is the average molecular weight of the mixture?
What is the consumer surplus enjoyed by the high demand : design two packages for the second-degree price discrimination case so that the first package has quantity 8 for the high demand and the second one has quantity 6 for the lower demand such that the low demand group has consumer surplus at least $5..
State the formula and calculate the molar mass of khp : Write the formula and calculate the molar mass of KHP (KHP is not potassium hydrogen phosphorus). Q2 When conducting this experiment, why is it necessary to standardize your NaOH solution before titrating your unknown acid?
What is the equilibrium price of widgets : The market for widgets is perfectly competitive with a market demand curve of: Q =200-(.5)P There is a single production technology available to firms that choose to operate in the market. The long run total cost function associated with this tech..
For what price does the firm make positive profit : What is the firm's individual supply curve  Suppose that the price of typewriters is p = $20. How many typewriters should the firm produce to maximize profit What is the firm's profit at this price For what price does the firm make positive profit
State how the isomerization from trans to cis isomer : how the isomerization from trans to cis isomer might occured. How does this compare to the isomerism of trans-[Co(NH3)4Cl2]Cl?
What is the probability that they sold over 1000 dollar : You are the sales manager for an appliance store. You have a total of 100 sales people. 40 sales people sold $1000 or less and the rest sold over $1000. Of the 40 who sold $1000 or less, there is a 0.20 probability that the sales person was new.
Find the profit maximizing output and price : Consider a demand function x = 100 - p where x is output and p is price. A monopolist has cost C(x) = (1/3) x^3 - 7 x^2 +111x +50 Find the profit maximizing output (and price) such that x 0. Check to see if you have a local max or min and also chec..

Reviews

Write a Review

Econometrics Questions & Answers

  Compute the competitive equilibrium prices

There are two invididuals. The first (individual A) has the utility function \(u^{a} = x_{1}^{2} + x_{2}^{2}\) , x>=0, and endowment (1,2). The second (individual B) has utility function \(u_{b} = x_{1} + ax_{2}\) , a>0, x>=0, and..

  What is the probability that marble will be green

what is the probability that it will be green?I did take one marble out of the bag; it was red. I set it aside. Now I am going to choose another marble at random. What is the probability that it will be green?

  What is the equivalent annual income

An income-producing property has an annual gross rent income of $1,000,000 and annual expenses of $300,000. Every 5 years, the parking lot need to be re-surfaced at $60,000 and every 10 years, the rood will have to be maintained at $40,000.

  Effect of mandated health insurance benefits

Determine the effect of mandated health insurance profits be on the labor if the employees do not place any value on the benefits? What if they do place value on the profits?

  What is the subgame perfect equilibrium of the game

Now suppose that there is a second ?rm with cost function c1 (q) above. Whichever cost function ?rm 1 chooses, the second ?rm will observe this choice and then have the option of entering the market or not. If he does not enter, ?rm 1 remains a mo..

  Calculate the population growth rate in the period

The table below presents the populations of Uganda, Ghana, India and Brazil in 2000 and 2010. For each of these countries, calculate the population growth rate in the period. What is the rank of countries with respect to their population growth rat..

  How many contracts will you buy or sell

Assume that there are no transactions or carrying costs. Should you buy or sell wheat futures? If each wheat futures contract is for 5,000 bushels, how many contracts will you buy or sell? How much will you spend or receive in buying or selling th..

  Determine the average cost function

If the firm can only produce one product and seeks to maximize weekly profit, write a condition that indicates when the firm should choose to produce Product 2 (where this condition is a function of the number of units sold per week).

  What is the cost of entering the market

England, France, and Germany. If you enter the English market, you have a 0.5 chance of big success (selling 100,000 units at a per-unit profit of $8), a 0.3 chance of moderate success (selling 60,000 units at a per-unit profit of $6), and a 0.2 c..

  Define the marginal benefit function

A factory benefits from discharging effluent, q, into a lake. The marginal benefit function is given by 60-2q. The pollution causes damages to two nearby communities. The marginal damages to Community A are 1q. The marginal damages to community B ..

  Estimate the future general inflation rate

A Man is planning to retire in 20 years. He can deposit money for his retirement at 6% compounded monthly. It is estimated that the future general inflation rate will be 5% compounded annually. What deposit must be made..

  Test the overall significance of the regression

Interpret the coefficient of LOG (AVGINC). Are its sign consistent with your expectations and determinant factors that explain students' performance in fifth-grade tests. We observe a sample of 420 districts in California

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd